Welcome to this week’s edition of the SimpleReverse Weekly Market & Interest Rate Update for the week ending 8/14/26! This newsletter gives you a quick update on what is going on in the markets and where the 10YR CMT is headed for the upcoming week.
Market Update:
Mortgage rates continued hovering in the 6.70% range this week, while the 10YR CMT continues trading in the 4.65%-4.70% range again this week.
Inflations cooled, consumer spending weakened and the labor markets showed additional signs of slowing this week. All of this contributes to reduced pressure on the FED to raise rates at its September meeting. Although far from declaring victory over inflation, this combination does shift the conversation from “does the FED need to hike again,” to “can the FED stay on hold and let current policy work?”
July’s CPI and PPI numbers released this week, both remained relatively unchanged; giving the FED more justification to remain patient rather than immediately tightening policy further. Last week’s job report also shows slower hiring, and with unemployment remaining relatively low; this also gives the FED less argument for a rate increase and allows them to remain focused on inflation. And finally, today’s report also shows retail sales fell, showing consumer spending is also beginning to soften; further reducing inflationary pressures.
For Reverse Mortgage Professionals, it remains important to clients how the benefits of a rising line of credit, no required payments and a tool like a reverse mortgage can help them combat rising costs, diminishing purchasing power and increasing volatility in the markets. And, as more seniors look to right-size, don’t forget to show them how a reverse for purchase can increase their purchasing power or help them preserve cash in retirement and still find the retirement home of their dreams!
10YR CMT Interest Rate Projection for Next Week:
The 10YR CMT currently sits at 4.66% for this week and was up slightly for the week. Overall, we will see a slight
increase of 1-2 bps
in the Expected Rate next week! This will have
NO IMPACT on the Expected Rate and will result in the SAME Benefit Amounts next week!
Based on the data from this week, we will see a slight increase in the Expected Rate of about 1-2 bps for next week. As mentioned above, this change will have NO IMPACT on Benefit Amounts next week. So, if you have applications or closings, there will be
NO DIFFERENCE IN BENEFIT AMOUNTS FOR YOUR CUSTOMERS FROM THIS WEEK TO NEXT WEEK! As usual, rates for next week will take effect on Tuesday, August 18! We are providing this data so that YOU can continue to make the decisions that best suit your business based on the information you have!
If you have questions about this, please let me know! Thanks for the partnership and Good Selling!!!
